The IDEA Publishing
  • HOME
  • Popular IDEAS
    • IDEAS for Your Better Business Life >
      • The Business Idea
      • The Career IDEA
      • The Money Idea
    • IDEAS for Your Better Diversions >
      • The Tech IDEA
      • The Travel IDEA
      • The Auto IDEA
      • The Outdoors IDEA
    • IDEAS for a Better Table >
      • The Food IDEA
      • IDEAS de Cocina Espanola
    • IDEAS for a Better You >
      • The Health IDEA
      • Living Well IDEAS
      • The Fitness IDEA
      • The Beauty IDEA
    • IDEAS for a Happier Home >
      • The Home Idea
      • The Entertaining Idea
      • The Parenting Idea
      • The Senior Living IDEA
      • The Pet IDEA
  • The Video Domain
    • Video IDEAS for Your Better Business Life
  • About
  • Contact
  • ads.txt
The_Money_IDEAThe Money IDEA

The Money IDEA

Ideas on How to Save and Ideas for What to Do with Your Savings!

More people are concerned about their financial future: 4 steps to protect yours

1/15/2021

Comments

 
couple-reviewing-finances

More people are concerned about their financial future: 4 steps to protect yours

(BPT) - Finances are consistently a top concern for many Americans, with “saving money” a top-10 most common New Year’s resolution. This year, Americans are more concerned than ever before due to the uncertainty created by the COVID-19 pandemic.

USE Credit Union reported that more than 75% of non-transactional calls received since the start of the pandemic were from members concerned about their financial future, citing economic hardship as the primary reason for concern. The economy and job market remain in a state of constant flux, which is causing many families to worry about their ability to pay an unexpected bill, continue to pay off student loans, mortgages or credit card debt, or save money for the future.

“Saving money is more than just putting spare change into a coffee can, or simply ordering takeout less often,” said Jeff Schroeder, vice president and chief product officer at Mercury Insurance. “Sure, those things can add up over time, but people may find that their greatest savings can come from taking a look at the necessary expenses they pay for every month, such as insurance.”

Schroeder recommends these four tips to help protect your finances in the coming year:

1) Check your auto insurance coverages. There’s no reason to pay for more coverage than you need, but being underinsured can leave you exposed. “The cost of repairs after a collision has grown in recent years, as a result of more crossovers and SUVs on the road, and more technologically advanced vehicles,” said Schroeder. “Beyond paying for more expensive repairs if your insurance doesn’t cover it, if you’re underinsured, you may also be responsible for paying out of pocket for medical bills, which could potentially devastate savings for a down payment on a house, your child’s college tuition or a future vacation. It’s vitally important to make sure you have the right amount of auto insurance coverage to protect against unforeseen events.”

2) Know what your homeowners insurance covers. First and foremost, be sure to read your policy so you’re clear about what it does and doesn’t cover. It’s a good idea to check in with your insurance agent each year to ensure you have adequate coverage, especially if you’ve made renovations, own collectible or valuable items, or live in an area that’s prone to flooding or earthquakes, as standard homeowners insurance policies typically don’t cover these situations. Also, maintain a home inventory to make sure to have an accurate record of your belongings and property.

3) Be aware of potential gaps in coverage. A standard homeowners insurance policy often doesn’t cover mechanical failures to your home’s appliances, HVAC or other essential systems, nor does it cover a break to service lines on your property that supply your home with electricity, gas or sewer functions. In either of these scenarios, this means you would be responsible for writing a big check to a repair company or having to purchase a pricy replacement. However, adding home systems protection and service line protection endorsements can help provide coverage for costly repairs and replacements, saving money and your peace of mind. Pennies spent now can save you thousands of dollars later.

4) Regularly shop for the best coverage and price. Insurance prices can vary significantly from company to company, so it’s a good idea to take a few minutes to see if you’re getting a good deal. Shop around at least once a year — making sure to look for the exact same coverage limits — to see if you can find a more affordable rate.

“Often, regional insurers like Mercury Insurance are more attuned to their policyholders' needs and can offer better rates,” Schroeder added.

The most effective way to make sure your finances are minimally impacted by insurance costs this year is to speak to an independent insurance agent. They can help make sure you have the proper amount and type of coverage to keep yourself, your family and property protected.

Comments

Most Americans say they're optimistic about a brighter financial future in 2021

1/11/2021

Comments

 
stacking-coins

Most Americans say they're optimistic about a brighter financial future in 2021

(BPT) - As we enter 2021, here’s one more essential item to put on your list in addition to canned goods and masks: a financial checkup. According to Fidelity Investments’ 2021 New Year Financial Resolutions Study, more than two-thirds of Americans experienced financial setbacks in 2020, often from the loss of a job or household income or another emergency expense. Even those lucky enough to maintain their income still may have had to tap savings to help others, as nearly one in five attribute their financial setback to providing “unexpected financial assistance to family members or friends.” Despite this, many Americans remain optimistic and determined to make their money work harder in the New Year, with 72% confident they’ll be in a better financial position in 2021.

“Americans are clearly ready to leave 2020 behind and start 2021 off on the right foot, including when it comes to their finances,” said Stacey Watson, senior vice president with oversight for Life Event Planning at Fidelity Investments. “This year’s top financial resolutions are consistent with what we’ve seen in the past, however, what makes 2021 unique is how people will achieve them, given the financial pressures and major life events many continue to experience throughout the pandemic.”

This year, 65% of Americans are considering a financial resolution for 2021, which is down marginally from last year (67%), but still quite strong given the headwinds experienced by so many families. Younger generations appear to be more committed to actively improving their finances in the new year, with 78% of all Gen Z and Millennial respondents considering a financial resolution compared to 59% of all Gen X and Boomers.

“Younger generations are building up their careers, families and finances, so it makes sense they have important financial resolutions to make. Still, Gen-X-ers and Boomers also experienced significant financial challenges in 2020 and may want to consider making some resolutions of their own to build a stronger financial future particularly when it comes to retirement readiness,” continued Watson.

Making a resolution, and checking it twice

Resolutions are an important start, but the key is to keep good financial routines going strong well beyond January — and ultimately have them become life-long habits. The study reveals the key to a successful resolution is the good feeling of making progress and setting clear and specific financial goals. Having someone to help keep you on track and hold you accountable also plays a role, as nearly one-in-five indicated this was a major reason they were able to stick to a financial resolution last year. In fact, more than three-quarters (77%) of people working with a financial professional were able to stick to their financial resolution in 2020, compared to just half (50%) of those who did not work with one.

Putting 2020 in the rearview

To help build a better financial future, consider these three things you can do to move forward:

  • Begin with a budget
    • Of those who said they were in a ‘better’ financial situation this year compared to last, more than one in five attributed the success to budgeting better. With so many online tools to make tracking your spending and savings easier, including Fidelity’s Budget Checkup, there are simple ways to create and stick to a budget aligned with a ‘50-15-5’ guideline.
  • Replenish that rainy-day fund
    • More than 8 in 10 Americans say they’ll build up their emergency savings in 2021, an important money move considering that many may have tapped into their stash of cash due to financial setbacks in 2020.
  • Find new sources of income
    • Nearly two-thirds say they plan to find new ways to make money in the new year, whether with a side hustle, selling items online or getting a part-time job. And with 30% of Americans planning to ‘declutter’ their homes in 2021, there’s a good opportunity to find more than just loose change in those cushions and closets.

To get more tips for making and keeping your financial resolutions, visit Fidelity.com.

This study presents the findings of a national online survey, consisting of 3,011 adults, 18 years of age and older. The generations are defined as: Baby Boomers (ages 56-74), Gen X (ages 40-55), millennials (ages24-39), and Gen Z (ages 18-23; although this generation has a wider range, we only surveyed adults for the purposes of this survey). Interviewing for this CARAVAN® Survey was conducted October 14-21, 2020 by Engine Insights, which is not affiliated with Fidelity Investments. The results of this survey may not be representative of all adults meeting the same criteria as those surveyed for this study. Margin of error is +/- 1.79% at the 95% confidence level. Smaller subgroups will have larger error margins.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
© 2021 FMR LLC. All rights reserved.
961172.1.0

Comments

Why Managing Finances Is So Important in Your 20s

12/17/2019

Comments

 
financial-planning-on-computer

It is never too late to start planning for your future or even planning for next week. Managing your finances in your 20s is an essential step in order to be better prepared for the years ahead. This article serves as a guide on how to get started to secure your financial future - today!


When you are in your 20s, there are countless things to worry about: Creating an independent life on your own is challenging, a work-life balance isn’t always easy to achieve, and maintaining a healthy lifestyle can be difficult. Beyond all of that, it is also necessary to manage your finances. Money for bills and other life necessities is one aspect, but it is also essential to plan for your financial future. While it is never too early to start working towards this, if you are not careful, you might start planning for your financial future too late. There are also the added benefits of early financial planning, forming smart money habits, and small amounts now growing into much more significant amounts in the future.

Investments Grow
Even if you are starting with small investments, starting early will have considerable benefits in the long run. While small investments will begin with small returns for you, those small returns will begin to grow from compounding interest. Monitoring your investment accounts and ensuring your returns are adequately reinvested will gradually become a source of personal wealth.

You Need a Healthy Financial Portfolio
As you begin to invest, it is best to not look into only one investment opportunity. Creating a diverse portfolio of investments allows your wealth to grow even in volatile markets. Beyond that, it is vital to understand the immediate impact of your financial health. Your financial portfolio determines how much of a house you can afford. It also affects lines of credit and other large purchases.

Planning Now Means Less Stress Later
Establishing a financial portfolio with smart investments is more than an immediate benefit; it is also a step towards your long-term financial planning. While retirement seems like a long way off during your 20s, It will happen before you realize it, and an intelligent financial portfolio can help you get set for it. Not to mention, emergencies will inevitably occur in your life that will make planning even more essential. By having a healthy portfolio, you might not be able to fully prepare for them, but you can at least be prepared to pay for them with a lesser degree of stress.

It is never too late to start planning for your future or even planning for next week. Managing your finances in your 20s is an essential step in order to be better prepared for the years ahead.

Please check out our other financial-related topics here!

KEYWORDS

  • advice×
  • compound interest×
  • compunding×
  • family×
  • family finances×
  • finance×
  • finances×
  • financial plan×
  • financial planning×
  • future×
  • guide×
  • hacks×
  • home×
  • homebuyers×
  • homebuying×
  • house×
  • housing×
  • interest×
  • interest rates×
  • investments×
  • lifehacks×
  • money×
  • money management×
  • need to know×
  • news×
  • personal finance×
  • personal finances×
  • personal wealth×
  • plan×
  • planning×
  • portfolio×
  • rate of return×
  • returns×
  • stress×
  • tips×
  • wealth×
  • worry


RSS Feed

Comments

Unique Wedding Ring Ideas for Your Significant Other

10/10/2019

Comments

 
wedding-rings
You have more options than you may think when it comes to choosing your wedding ring today!
As wedding season begins to quickly roll around once again, many couples are seeking to make their special day unique. Whether you're going for an out of this world theme or getting your wedding dance choreographed there is no doubt that unique is the end goal here. However, many are seeking to go above and beyond the day of the wedding, and looking for that something special to last throughout their marriage. The following list entails some of the most unique ideas when it comes to choosing your wedding ring.

Forego a Traditional Ring—Use Tattoos Instead
A wedding ring has been the staple of marriage for at least a couple of hundred years now. They represent a tight bond between two people and a visual of it as well. However, couples today don't seem to be satisfied with simply an object as a representation of their commitment. Therefore, a new trend has emerged amongst younger, soon to be married couples. This trend includes the addition of a tattoo on each of their bodies. Usually, it's the date of the wedding or their names, which are marked somewhere on their skin, but some have even gone so far as to tattoo an entire portrait of themselves! Needless to say, this is one way to truly show your commitment.

Rings That Support a Cause
Often the things that bring people together are their shared values. We constantly hear stories about people meeting within a school social club or while volunteering at a local shelter. Nevertheless, these shared values are a big part of one's life. Why not continue this into the marriage with the inclusion of a wedding ring that supports that cause? There are differences between lab created diamonds and mined diamonds but none as obvious as the eco-friendly nature of one over the other.

Forget About the Centerpiece Look
One of the most common designs of a wedding ring is that big centerpiece diamond. While this may look very impressive, it does not make it unique. New designs are popping out today that incorporate the value of a centerpiece but with a different approach. We highly recommend looking at wedding rings that showcase multiple diamonds spread across the band. These beautiful designs not only keep the value of the ring but they give it that extra bit of uniqueness. Choosing a wedding ring design that will be yours to keep and look at for years may be a little daunting. Therefore, we recommend understanding your expectations and what is realistically possible to obtain. We hope that the list above has provided you with some ideas to make your wedding ring that much more unique.


Looking for more unique styling tips? We recommend reading another article from The Beauty IDEA.

KEYWORDS

  • advice×
  • consumers×
  • design×
  • diamond×
  • family finances×
  • fashion×
  • gold×
  • hacks×
  • jewelry×
  • lifehacks×
  • lifestyle×
  • marriage×
  • money×
  • personal finance×
  • personal finances×
  • personal wealth×
  • relationships×
  • savings×
  • silver×
  • style×
  • suggestions×
  • tech×
  • technology×
  • tips×
  • traditions×
  • trend×
  • trends×
  • wealth×
  • wedding rings

RSS Feed

Comments

The truth about life insurance

1/23/2019

Comments

 
female_insurance_agent
Do you know what you need to know about life insurance?

(BPT) - If you haven't made solid financial plans, now would be a good time to consider a life insurance policy to protect you and your family in your time of need - or protect your loved ones in your absence.


Given the importance of life insurance, it's surprising that 37.5 million American households lack such a policy, according to the 2016 Facts About Life study by the industry group LIMRA. That may be because many people misunderstand how such policies work and how much they cost. For example, recent Insurance Barometer studies by LIMRA and Life Happens found 63 percent of Americans cite expense as the reason they don't carry term insurance, yet 80 percent overestimate the cost - millennials by 213 percent and Gen Xers by 119 percent.


While some Americans hope to rely on other sources to protect their families, they may not realize all the benefits life insurance offers. Every family has different needs, and some life insurance products are flexible enough to offer customizable options to provide a measure of financial security to your spouse and children - the people that matter most.


Consider these other common myths about life insurance:


Myth: Life insurance is only available through financial advisors. In fact, quality policies for your entire family are often available through your employer or your spouse's employer. For example, Boston MutualLife Insurance Company offers a range of workplace solutions paid for by employers, employees or both, including permanent life, term life, critical illness, accident and disability insurance. Talk to your company's HR department about the process involved in securing comprehensive coverage for your family.


Myth: Workplace policies can't offer enough options for your needs. You'll find that well-established life insurance companies understand the market well enough to offer a range of flexible products, including policies that are payroll deductible, stable in cost regardless of your age, portable when you're changing jobs and available with add-on riders or other insurance types through the same carrier.


Myth: Young, healthy people don't need life insurance. The truth is, your health can change at any time and it's best to expect the unexpected. Uninsured people can easily leave behind personal, medical or mortgage debts and/or funeral expenses that end up burdening family members or executors when they die.


Myth: Your life insurance policy only covers you, not your family. Not true. Some products protect you, your spouse, your dependent children and even your grandchildren, often at one affordable cost. That's why marriage and becoming a parent can be excellent reasons for buying new policies.


Investing in life insurance is a crucial step to take to protect yourself and your family from unexpected losses. But it doesn't have to be confusing or complicated. Find more detailed information about life insurance options for you and your family at www.BostonMutual.com.



KEYWORDS


  • advice ×
  • age ×
  • aging ×
  • BPT ×
  • Brandpoint Content ×
  • debt ×
  • estate planning ×
  • families ×
  • family ×
  • financial planning ×
  • hacks ×
  • insurance ×
  • lifehacks ×
  • life insurance ×
  • marriage ×
  • money ×
  • money management ×
  • mortgage ×
  • mortgage loan ×
  • myth ×
  • myths ×
  • nestegg ×
  • personal finance ×
  • personal finances ×
  • personal wealth ×
  • plan ×
  • planning ×
  • protection ×
  • retirement ×
  • retirement planning ×
  • savings ×
  • spouse ×
  • tax planning ×
  • tips ×
  • wealth

Comments

Three tax savings strategies for a secure retirement to try right now

8/19/2018

Comments

 
tax-savings-strategies-for-a-secure-retirement
Three tax savings strategies for a secure retirement to try right now

With the increasing likelihood that Social Security and Medicare benefits may be reduced in the future, it’s more important than ever to use every technique available to maximize your retirement savings. These three outside-the-box strategies could make an enormous difference in your retirement readiness. The sooner you start, the more you may save.



(BPT) - Individuals who rushed to prepay property taxes after the passage of the Tax Cuts and Jobs Act may have saved some money in 2018 — but that’s pennies compared to the long-term tax savings taxpayers should take advantage of before the TCJA’s individual tax provisions are expected to expire in 2026, according to Robert Fishbein, vice president and corporate counsel at Prudential Financial.

Also expected to expire in 2026? According to trustees for Social Security, that’s when Medicare’s main trust fund will run out of money. With the increasing likelihood that Social Security and Medicare benefits may be reduced in the future, it’s more important than ever to use every technique available to maximize your retirement savings.

Three outside-the-box strategies could make an enormous difference in your retirement readiness. The sooner you start, the more you may save.

Fund an HSA for retirement health care

Estimates suggest even a healthy 65-year-old couple will need at least $275,000 to cover retirement health care costs. A Health Savings Account, or HSA, provides a way to save that money without paying a dime in taxes. An HSA account is available to individuals enrolled in a high deductible health insurance plan.

First, these individuals can fund their HSA through a tax-deductible contribution or pre-tax payroll deduction. Second, any interest and investment gains are tax-free. Finally, the funds can be withdrawn tax-free to pay for qualified medical expenses— a triple tax advantage over a traditional savings account.

The best part? There is no requirement to use HSA funds in the year of contribution, which means funds can grow on a tax-favored basis for future health care expense needs.

For 2018, family contribution limits are $6,900, or $7,900 if you are 55 or older, and those amounts are indexed for inflation in future years. If you start contributing the maximum even as late as age 55, and earn 3 percent per year, you could have more than $90,000 to pay for your retirement health care by age 65. If you start contributing the maximum as early as age 40, you could have saved almost $270,000. These funds will continue to grow tax-free in retirement until you need them.

If you don’t use HSA funds in full before you die, excess funds are subject to income tax, but will be otherwise available for your heirs.

Consider a Roth IRA conversion

The typical dogma says that converting an IRA or traditional 401(k) to a Roth IRA does not make sense if you expect your tax rate in retirement to be lower than at the time of conversion. However, lesser known benefits of a Roth IRA may make it worthwhile to have at least part of your retirement assets in Roth IRA form.

Start with no required minimum distributions. With a Roth you aren’t forced to draw down your funds once you attain age 70½ and can continue to benefit from the tax-free growth, thereby maximizing the after-tax funds eventually available for you or your heirs.

Another significant benefit of a Roth IRA or Roth 401(k) is tax diversification. For example, you may choose to take taxable distributions up to a certain amount and then tax-free distributions to avoid a higher income tax bracket.

If you are a high-income taxpayer, Roth IRA distributions are not considered income when determining thresholds for increased Medicare premium charges or the 3.8 percent income tax surcharge on investment gain. If your income is more modest, Roth IRA distributions are not considered income when determining whether you are subject to income tax on Social Security benefits.

If anything, a conversion is more attractive now since you have an opportunity to convert and pay income tax with marginal rates that are generally lower than under prior law. Since individual tax law changes are temporary and tax rates will revert to the former higher amounts starting in 2026, you have an eight-year window to benefit from lower rates.

Make “backdoor” Roth IRA contributions

The tax law prescribes income limits so high-income individuals may not make a direct contribution to a Roth IRA. However, there are no income limits on converting traditional IRA funds to a Roth IRA.
Any person under age 70.5 who has earned income by year-end can make an IRA contribution. While income limits may prevent you from making a pre-tax contribution, you can make this contribution even if you have fully funded a 401(k) or another employer plan.

Once you have made your contribution to a traditional IRA, simply convert that amount to your Roth IRA. As long as this is your only traditional IRA and you have made an after-tax contribution, then an immediate conversion will have converted a tax-deferred asset into a potentially tax-free asset. If you have multiple IRAs, the IRAs are aggregated to determine how much is taxable upon conversion.

While we spend much time on our investment strategies to help gain an extra percentage or two of investment yield, these tax planning strategies can be a more reliable way of maximizing your after-tax retirement income and wealth for your family — no matter how Social Security and Medicare turn out.

Prudential Financial, its affiliates, and their financial professionals do not render tax or legal advice. Please consult with your tax and legal advisors regarding your personal circumstances.


KEYWORDS

  • 401(k) ×
  • advice ×
  • annual ×
  • BPT ×
  • Brandpoint Content ×
  • contributions ×
  • conversion ×
  • distribution ×
  • distributions ×
  • diversification ×
  • family ×
  • finances ×
  • financial advisor ×
  • financial planning ×
  • fixed income ×
  • growth ×
  • hacks ×
  • health savings account ×
  • HSA ×
  • income ×
  • incomes ×
  • income tax ×
  • income taxes ×
  • IRA ×
  • limits ×
  • marginal ×
  • personal finance ×
  • personal finances ×
  • personal wealth ×
  • plan ×
  • planning ×
  • rates ×
  • retire ×
  • retirees ×
  • retirement ×
  • retirement account ×
  • Roth IRA ×
  • savings ×
  • tax ×
  • tax consequences ×
  • taxes ×
  • tips ×
  • wealth

Comments

What Are Senior Citizens’ Biggest Financial Regrets From Their Twenties?

7/26/2018

Comments

 
financial-regrets
What Are Senior Citizens’ Biggest Financial Regrets From Their Twenties?

Are today’s senior citizens sufficiently prepared for retirement or have past financial mistakes impeded their progress? What did older Americans wish they knew about managing finances when they were younger? This study from Mike Brown of LendEDU reveals key insights that can help investors of all ages.


Introduction

For the everyday consumer, getting a grasp on finances can be stressful or even seemingly impossible.

It could take years of balancing a budget and living paycheck-to-paycheck - a crash course of sorts - to full understand the ins-and-outs of personal finance allowing someone to position him or herself for a better financial future.

Unfortunately for some, irresponsible management of finances, such as taking on too much debt or not saving enough, could lead to irreversible damage.

In our latest survey of 1,000 senior citizens, LendEDU sought to uncover how older Americans are faring financially and if they made the right decisions throughout life to live comfortably in their later years.

Are today’s senior citizens sufficiently prepared for retirement or have past financial mistakes impeded their progress? What did older Americans wish they knew about managing finances when they were younger?

Here were a few key takeaways from the study:

  • 55% of senior citizens said they have not saved enough for retirement, 18% were not sure if they had enough saved, and 27% felt as if they did

  • 21% of older Americans, the plurality, indicated that their biggest financial regret from their twenties was not saving enough for retirement

  • 69% of respondents stated that Social Security benefits are a critical part of their financial strategy while 47% said the same regarding life insurance ​

​

Observations & Analysis

More Than Half of Senior Citizens Underprepared for Retirement, Most Wish They Started Saving Sooner!

To gather the data for LendEDU’s story, we surveyed 1,000 Americans, all of whom were at least 65 years of age.


One of the first questions we asked the respondent pool was the following: “What is the biggest financial regret you have from your twenties?”
​
Picture
The plurality of the respondents, 21.4 percent, indicated that the biggest financial regret from their twenties was not saving enough for retirement. Other popular answer choices included spending too much money on nonessential things (17 percent), not investing (12.3 percent), and getting into too much debt (10 percent).

Circling back, it was quite telling that senior citizens regret not saving enough for retirement in their twenties. Getting a jumpstart on retirement is essential to living a comfortable life in one’s later years. Due to compound interest, the earliest possible start to retirement saving will be the most beneficial as your money will have more time to grow.

Professor Timothy Wiedman of Doane University, 66, agreed with most senior citizens who took this survey in that his biggest regret was not getting a jump on retirement while in his twenties.

“I put off starting to save for retirement and didn't open my first IRA until I was a bit over 31 years old. I justified this by telling myself that I could always "catch up" later on my long-term financial plans after establishing a solid career and seeing my income increase,” said Wiedman.
Wiedman soon realized the delay had a substantial impact on his ability to save and earn.

“But the earning power of compound interest is based on time, so an initial delay can have severe consequences. Thus, for young folks these days, opening a Roth IRA as early as possible is vital,” he said. “For example, if a 23-year-old fresh out of college puts $3,000 per year into a Roth IRA that earns a 7.8 percent average annual return, 44 years later at retirement, that $132,000 of invested funds will have grown to $1,009,275. On the other hand, starting the same Roth IRA 20 years later will yield very different results.”

So we know that many older Americans seriously regret not saving for retirement early enough. But were they able to salvage that lost time? Are they prepared for retirement?

The following question was proposed to all 1,000 senior citizen respondents: “As of today, do you believe that you have saved enough for retirement?
Picture
The strong majority of older Americans, 54.6 percent, admitted that they do not believe they have saved enough for retirement, while only 26.6 percent think they are on the right track, and 18.8 percent are still unsure.

It came as quite a surprise that so many senior citizens believe they are not aptly prepared for life after work when they should be enjoying warm weather and leisure activities.

But once again, it goes to show the potentially crippling effects of not saving enough for retirement at a younger age. Quite a few senior citizen respondents wished they had saved more in their twenties and that sentiment transferred over to this more black-and-white question.

For reference of what is to come, a LendEDU study found that of 500 millennials who consider themselves to be saving for retirement, 41 percent are using a savings account to save for retirement. A savings account - even a high interest savings account - likely won't produce anywhere near the growth delivered by a 401(k) or individual brokerage account, which 59.4 percent of respondents used.

If those millennials wish to find themselves in a better position than more than half of the baby boomers at the age of retirement, they should probably switch from a savings account to a robo-advisor, 401(k), or brokerage account.

Additionally, when we asked our senior citizen respondents to answer what they know about personal finance today that they had not known at 25, 15.68 percent of the answers were: “I know how to save for retirement.”

Picture
The plurality of answers, 28.68 percent, pertained to learning how to live within one’s means, while 25.95 percent of answers were: “I know how to budget.”

Dr. John Story, a 60-year-old college professor at the University of St. Thomas, Houston, summed up this question quite well and further reinforced the importance of getting a jump start on retirement.

“I wish I had known the true cost of debt, and the flipside, the real value of long-term saving.”

With a Lack of Retirement Funds, Many Seniors Relying on Social Security and Life Insurance

As one gets older, there are two components that are thought to be key to achieving a sustained financial comfort. One is life insurance, a product, while the other is Social Security, a benefit.

Life insurance and Social Security benefits become all the more crucial for senior citizens when they have not saved enough for retirement, which is the case for over half of our respondents.

Not surprisingly, many poll participants indicated that they are relying heavily on both things to live their later years comfortably due to a lack of sufficient retirement savings.

​
Picture
In comparison to life insurance, older Americans were more likely to list Social Security benefits as important to their financial strategy. A majority, 69.1 percent, stated that Social Security benefits are a critical component, while 18.7 percent said the opposite, and 12.2 percent were still undecided.

Whereas life insurance must be purchased, Social Security is a benefit that can be qualified for by being of age and by working for a certain number of years (usually 10).
Life insurance is purchased by many senior citizens because it can solidify the financial security of loved ones should the buyer pass away.

While a majority was not achieved, 46.9 percent of senior citizens indicated that life insurance was an important part of their financial strategy. 34.1 percent said that the insurance product does not hold much weight for their financial plan, while 19 percent were unsure.

Considering many of LendEDU’s respondents are not sufficiently prepared for retirement, having life insurance or access to Social Security benefits could become quite pivotal for living comfortably in their later years.

​

Methodology

All data within this report derives from an online poll commissioned by LendEDU and conducted online by polling company Pollfish. In total, 1,000 respondents ages 65 and up and residing in the United States were surveyed. These respondents were found via age and location filtering on Pollfish, and then were selected at random from Pollfish’s U.S. user panel of over 100 million. The poll was conducted over a 5-day span, starting on March 26, 2018, and ending on March 30, 2018. Respondents were asked to answer all questions truthfully and to the best of their ability.
​


Full Survey Results

1. What do you know about personal finance today that you didn't know when you were 25? (Select all that apply)
a. 25.95% of answers were "I know how to budget"
b. 28.68% of answers were "I know how to live within my means"
c. 15.68% of answers were "I know how to save for retirement"
d. 8.57% of answers were "I know how to invest in the stock market"
e. 14.65% of answers were "I understand how consumer credit works"
f. 6.48% of answers were "None of the above"

2. What is the biggest financial regret you have from your twenties?
a. 21.4% of respondents answered "I didn't save enough for retirement"
b. 17% of respondents answered "I spent too much money on nonessential things"
c. 12.3% of respondents answered "I didn't invest my money"
d. 5.5% of respondents answered "I made poor investment decisions"
e. 2.8% of respondents answered "I didn't save enough for my child's education"
f. 10% of respondents answered "I got myself into too much debt"
​g. 5.1% of respondents answered "Took a job where I made more money but did not enjoy it"
h. 5.8% of respondents answered "Took a job where I made less money but enjoyed it"
i. 20.1% of respondents answered "None of the above"​

3. Is life insurance a critical component of your financial strategy? ​
​a. 46.9% of respondents answered "Yes"
b. 34.1% of respondents answered "No"
c. 19% of respondents answered "Unsure"​

4. As of today, do you believe that you have saved enough money for retirement?
a. 26.6% of respondents answered "Yes"
b. 54.6% of respondents answered "No"
c. 18.8% o​f respondents answered "Unsure"
​

5. Are Social Security benefits a critical component of your financial strategy?​
a. 25.8% of respondents answered "Yes"
b. 29.7% of respondents answered "No"
c. 44.5% of respondents answered "Unsure"

​

This report originally appeared on LendEDU. Reproduced with their permission.


KEYWORDS

  • advice×
  • financial planning×
  • hacks×
  • lifehacks×
  • money×
  • money management×
  • personal finance×
  • personal finances×
  • personal wealth×
  • planning×
  • research×
  • retire×
  • retirees×
  • retirement×
  • retirement account×
  • retirement planning×
  • Social Security×
  • tips×
  • wealth

Comments

New ways renters are becoming homeowners

12/27/2017

Comments

 
Picture

(BPT) - Sponsored Content from Vanderbilt Mortgage and Finance, Inc.

The world that millennials have grown up in is a lot different than the world the Gen Xers and Baby Boomers knew. The digital revolution, widespread use of smartphones and adoption of disruptive technologies such as ride sharing and vacation rental apps are just a few of the factors that have altered the social landscape.

Unfortunately, rising student debt, rising home prices and other economic factors have hit many millennials and left them to believe that they cannot afford a home. Many feel as though they have been priced out of the American dream and they will never be able to buy a home.

But no matter what your age, there are plenty of ways to become a homeowner, you just have to think a little more creatively.

The rise of the rental

Looking at current trends, a recent research study found that more U.S. households are now renting than at any time in the last 50 years. With a rising number of renters, many have worried that we are becoming a nation of renters rather than a nation of homeowners.

This is most evident with the younger generation, people under 30, who the National Multifamily Housing Council have found now account for 50 percent of all renters in the U.S.

They aren’t renting because it’s a more affordable option, either. As many residents know throughout the country, rents are going up and up. Between 2012 and 2015, the median gross rent has gone up 8.24 percent, rising to $959. When you combine that with the utilities, a deposit and first and last month’s rent, it’s a lot of money to spend on something you will never own.
​
So why do people choose to rent? One reason is that many don’t realize that just like phones, cars and countless other things we use on a daily basis, homes have changed.

New priorities mean a new solution

As demand for housing increases, and prices on new and existing homes continue to rise, manufactured housing has adapted to the standards of today’s first-time homebuyers and provides a solution for a market in short supply of quality, affordable options.

In 2016, the average sales price for a manufactured home without land was around $70,600 — that’s an average of $48.82 per square foot — making them an affordable solution to renters looking to become homeowners.

“We believe manufactured homes offer a great solution for many households seeking affordable housing,” says Vanderbilt Mortgage and Finance Inc. President Eric Hamilton. “We work with our customers to help find financing options that fit their needs and circumstances.”

Renters don’t have to continue doling out a monthly check for something they’ll never own. The housing market has changed and with this change, manufactured homes have brought forth new opportunities to become a homeowner.
NMLS Disclosure

Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, Licensed by the NH Banking Department, MT Lic. #1561, Licensed by PA Dept. of Banking.

Comments
<<Previous



    Archives

    January 2021
    December 2020
    September 2020
    August 2020
    June 2020
    May 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    December 2017
    November 2017
    September 2017
    August 2017
    July 2017
    June 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016


    Interested in Publishing on The Money Idea?
    Send your query to the Publisher today!

    Categories

    All
    1040
    1040a
    1040EZ
    1099
    401k
    401(k)
    Accident
    Accident Insurance
    Accidents
    Account Information
    Accounting
    Accounts
    Advertising
    Advice
    African-American
    African-Americans
    Age
    Aging
    Amazon
    Analysis
    Annual
    Annual Enrollment
    Annuities
    Annuity
    Antique
    Antiques
    Appraisal
    Apps
    April 15th
    Assets
    Assisted Living
    Attorney
    Auto Insurance
    Auto Loan
    Automatic Payments
    Automobile
    Autopay
    Baby
    Bank
    Banking
    Bankruptcy
    Banks
    Benefits
    Bills
    Birth
    Bonds
    Borrower
    Borrowing
    BPT
    Brandpoint
    Brandpoint Content
    Budget
    Budgeting
    Calculator
    Cancer
    Capital
    Capital Gains
    Car
    Car Accident
    Career
    Careers
    Car Insurance
    Car Loan
    Cars
    Cash
    Cash Flow
    Casinos
    CBS This Morning
    CD
    Center For Financial Services Innovation
    Certainty
    Charitable
    Charity
    Check
    Checking
    Checks
    Child
    Children
    Child Tax Credit
    Choices
    City
    Claim
    Claims
    Closing Costs
    Collateral
    Collectibles
    College
    College Loans
    Communications
    Community
    Companies
    Comparison
    Compensation
    Compound Interest
    Compunding
    Computer
    Computers
    Conflicts Of Interest
    Consumer
    Consumer Protection
    Consumers
    Consumption
    Contract
    Contributions
    Convenience
    Conversion
    Copayment
    Copayments
    Coronavirus
    Cost Of Living
    Costs
    Couples
    Court
    Coverage
    CPA
    Credit
    Credit Card
    Credit Cards
    Credit History
    Credit Report
    Credit Reports
    Credits
    Credit Score
    Credit Union
    Crime
    Criminal
    Crisis
    Critical Illness Insurance
    Cybercrime
    Cybersecurity
    Data
    Dates
    Death
    Debit Card
    Debt
    Debts
    Deductibles
    Deductions
    Deferred Compensation
    Defined Contribution
    Delivery
    Demographics
    Department Of Housing And Urban Development
    Design
    Destinations
    Diamond
    Digital
    Disability
    Disability Insurance
    Discount
    Discounts
    Distribution
    Distributions
    Diversification
    Doctor
    Doctors
    Documents
    Donations
    Down Payment
    Down-payment
    Earned Income Tax Credit
    Earnings
    EBay
    Ecommerce
    Economics
    Economy
    Education
    Educational
    EITC
    Eligibility
    Email
    Emergency
    Emergency Fund
    Emergency Plan
    Employee
    Employee Benefits
    Employer
    Energy
    Entertainment
    Environmental
    Equity
    Estate
    Estate Planning
    Estates
    Ethnic
    Ethnicity
    Exemptions
    Expenses
    Expert
    Expertise
    Experts
    Families
    Family
    Family Features
    Family Finances
    FASB
    Fashion
    Federal Government
    Federal Housing Administration
    Fees
    FHA
    Filing
    Finance
    Finances
    Financial
    Financial Advisor
    Financial Crisis
    Financial Institutions
    Financial Plan
    Financial Planning
    Financial Setbacks
    Financial Strategy
    Fixed Income
    Flood Insurance
    Fraud
    Future
    Gambling
    Gaming
    Generic Drugs
    Gifts
    Goals
    Gold
    Government
    Green
    Groceries
    Grocery
    Growth
    Guide
    Hacks
    Health
    Health Care
    Health Insurance
    Health Savings Account
    Heirs
    Higher Education
    Hobby
    Holiday
    Home
    Homebuyers
    Homebuying
    Home Equity
    Home Equity Conversion Mortgage
    Home Improvement
    Home Insurance
    Home Loan
    Homeowners
    Homeownership
    Home Ownership
    Homeowners Insurance
    Home Repairs
    Homes
    Home Security
    Home Warranty
    Hospital
    House
    Household
    Housing
    HSA
    HUD
    ID
    Identification
    Identity Theft
    Incentives
    Income
    Incomes
    Income Tax
    Income Taxes
    Individual Investor
    Information
    Injury
    Insurance
    Insurance Claim
    Insurance Company
    Insurance Policy
    Insurance Rates
    Interest
    Interest Rates
    Internal Revenue Service
    Internet
    Investing
    Investments
    IRA
    IRS
    Itemize
    Jewelry
    Job
    Job Loss
    Jobs
    Kids
    Land
    Laptop
    Law
    Lawsuit
    Lawyer
    Legal
    Lender
    Lending
    Leukemia
    Liability
    Lifehacks
    Life Insurance
    Lifestyle
    Limits
    Line Of Credit
    Literacy
    Litigation
    Loan
    Loans
    Long-term
    Long-term Care
    Loss
    Losses
    Lost Wages
    Management
    Manufactured Home
    Manufactured Homes
    Marginal
    Marketing
    Markets
    Marriage
    Matching
    Medicaid
    Medical
    Medical Bills
    Medicare
    Medium
    Mental Health
    Metro Areas
    MI
    Millennials
    Modular Homes
    Money
    Money Management
    Monthly Budget
    Monthly Payments
    Mortgage
    Mortgage Insurance
    Mortgage Loan
    Motivation
    Move
    Moving
    Myth
    Myths
    Need To Know
    Nestegg
    New Home
    News
    Nursing Homes
    Online
    Online Auction
    Online Banking
    Online Filing
    Online Shopping
    Opportunities
    Opportunity
    Origination Cost
    Parents
    Patients
    Pay
    Paycheck
    Payment
    Payments
    Penalties
    Penalty
    Pension
    Personal Bankruptcy
    Personal Finance
    Personal Finances
    Personal Privacy
    Personal Wealth
    Pets
    Phone
    Plan
    Planning
    PMI
    Policy
    Portfolio
    Premiums
    Prescription Drugs
    Prevention
    Prices
    Pricing
    Priorities
    Privacy
    Property
    Protection
    Prudential
    Psychology
    Purchasing Power
    Qualifications
    Rate Of Return
    Rates
    Real Estate
    Realtor
    Refund
    Regulation
    Relationships
    Relocation
    Rent
    Rental
    Renters
    Renting
    Resale
    Research
    Restaurants
    Retire
    Retirees
    Retirement
    Retirement Account
    Retirement Planning
    Returns
    Reverse Mortgage
    Risk
    Risk Factors
    Risk Tolerance
    Robbery
    Rollover
    Roth IRA
    Safety
    Salary
    Save
    Saving
    Savings
    Scam
    Scams
    Scholarship
    School
    Security
    Senior Care
    Senior Citizens
    Seniors
    Settlement
    Settlements
    Shipping
    Shocks
    Shopping
    Silver
    Skimming
    Smartphone
    Socially Resposible Investing
    Social Security
    Spanish
    Spend
    Spending
    Spouse
    SSDI
    State Taxes
    Stock Market
    Stocks
    Strategy
    Stress
    Style
    Suggestions
    Supply Chain
    Survey
    Sustainability
    Tax
    Tax Consequences
    Tax Credits
    Tax Deadlines
    Tax Deductions
    Taxes
    Tax Filing
    Taxpayers
    Tax Planning
    Tax Preparation
    Tax Refund
    Tax Return
    Tech
    Technology
    Teens
    Terms
    Testing
    Texting
    Theft
    TIAA
    Time
    Tip
    Tips
    Title
    Tools
    Traditions
    Transaction
    Transactions
    TransUnion
    Trend
    Trends
    Tricks
    Trucking
    Trump
    Trusts
    Unemployment
    Unemployment Insurance
    Unexpected Expenses
    UPS
    Urban
    Vacation
    Valuables
    Value
    Veterans
    Volatility
    Voluntary Benefits
    Wages
    Wall Street
    Washington
    Wealth
    Web
    Wedding Rings
    Wife
    Will
    Wills
    Wisconsin
    Withdrawl
    Withholding
    Work
    Workplace
    Worry
    Wow
    Young Adults







    Get this money content for your website with our RSS Feed below!

    RSS Feed

Proudly powered by Weebly
  • HOME
  • Popular IDEAS
    • IDEAS for Your Better Business Life >
      • The Business Idea
      • The Career IDEA
      • The Money Idea
    • IDEAS for Your Better Diversions >
      • The Tech IDEA
      • The Travel IDEA
      • The Auto IDEA
      • The Outdoors IDEA
    • IDEAS for a Better Table >
      • The Food IDEA
      • IDEAS de Cocina Espanola
    • IDEAS for a Better You >
      • The Health IDEA
      • Living Well IDEAS
      • The Fitness IDEA
      • The Beauty IDEA
    • IDEAS for a Happier Home >
      • The Home Idea
      • The Entertaining Idea
      • The Parenting Idea
      • The Senior Living IDEA
      • The Pet IDEA
  • The Video Domain
    • Video IDEAS for Your Better Business Life
  • About
  • Contact
  • ads.txt